Thomson Reuters has expanded its Connected Risk platform to include a Model Risk Management (MRM) solution, allowing institutions to demonstrate a real-time understanding of their model risk landscape, with the ability to report on the model's governance status, sign-offs and related issues from a single platform source.
Financial modelling plays a critical role in several financial institution activities, including credit underwriting, risk management, capital adequacy and instrument valuation. The MRM solution aims to provide Risk professionals with a holistic understanding of how each of these models in the business is derived, validated and applied. It features an approach to model governance, which allows for the capture of on-the-go updates and additions to the model inventory with real-time reporting to regulators, committees and cross-risk functions. Changes are managed with an audit trail of supporting documentation, issues resolution and sign-off.
"Model transparency and efficiency continue to be key challenges widely expressed by many of our global customers seeking technological solutions that help them streamline their model governance life cycle, prevent gaps and manage risk, as well as ensure accurate reporting and issues resolution," says Gareth Evans, managing director, Enterprise Risk Management at Thomson Reuters.